Toyota May Raise Prices in India to Offset Falling Rupee

By Santanu Choudhury

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A new Toyota Corolla.

NEW DELHI – The India unit of Toyota Motor Corp. is considering raising its car and sport-utility vehicle prices, a senior company executive said, as the auto maker looks to offset the higher cost of imported parts caused by the depreciating rupee.

“The sharp fall in the rupee has come as a surprise to us,” said Sandeep Singh, deputy managing director in charge of marketing at Toyota Kirloskar Motor Pvt. Ltd.

The company may partly absorb the cost, but would need to transfer some to customers, he said, adding that the size and timing of the increase will be decided later.

Separately, Jnaneswar Sen, senior vice president for marketing and sales at the local unit of Honda Motor Co., said the sharp decline in the rupee “is a cause for concern.” But he added that the company isn’t considering an immediate increase in its vehicle prices.

“We are watching the situation closely. If the rupee depreciates further, then it will become difficult for us to hold on to the current prices,” Mr. Sen said.

The rupee has fallen as much as 19% against the U.S. dollar in the past 12 months. It slid to an all-time low of 56.37 Thursday.